I look at it as competent coaches seeing and admitting the obvious that most of us could already see. Jaylon Smith is a strongside linebacker who is much better going forward than in reverse. He's better at rushing toward the line of scrimmage rather than attempting to drop into coverage. That's not bashing him, it's honestly evaluating the stronger and weaker parts of his game. It's the truth.
So the best place this team can put him is on the outside, and specifically the strongside. Where his physicality will be put to better use and where he will likely be giving more opportunities to blitz and rush. I'm encouraged to hear the news as it is something I've felt should have been done a while ago. And for me it's even more indication of the improvement in the coaching staff and their ability to more effectively evaluate talent.
This is good news to me.